In recent years, rising costs have worried retirees about Social Security payouts. Washington lawmakers gave the stimulus check update 2024 and may tweak the cost-of-living adjustments (COLAs) formula to keep benefits up with inflation.
Washington lawmakers gave the stimulus check update 2024 and may tweak the cost-of-living adjustments (COLAs) formula to keep benefits up with inflation. (Photo from Yahoo)
Stimulus Check Update 2024: How Washington’s Proposed Changes Could Increase Retirement Income
To counteract inflation, stimulus check update 2024 on Social Security calculates its annual COLA using the CPI-W. This strategy doesn’t reflect seniors’ buying patterns, say experts.
COLAs can be calculated using the Consumer Price Index for the Elderly (CPI-E), which targets seniors over 62. Advocates argue this would properly depict senior inflation, emphasizing housing and healthcare.
Comparing real CPI-W COLAs versus theoretical CPI-E COLAs over the previous decade shows possible gains. Using the CPI-E would have raised Social Security payouts by 1.9%, or $2,689 for the average retiree.
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Boosting Social Security Payout – What You Need to Know for Your Retirement!
A more aggressive strategy is calculating COLAs annually using the higher CPI-W-CPI-E inflation metric. COLAs might rise 0.3 percentage points yearly using this strategy. This strategy would have raised payouts by 4.4% over the previous decade, or $3,788 for the average retiree.
These measures try to improve Social Security payouts, but the program is struggling financially. The Old Age, Survivors, and Disability Insurance (OASDI) trust fund, which funds Social Security, may run out in a decade. Lawmakers must handle this approaching financial problem, and COLA increases may worsen it.
The Stimulus check update 2024 on Social Security’s current budgetary needs trump potential benefit improvements. Before COLAs alter, Social Security beneficiaries may require comprehensive remedies to maintain the program’s long-term survival. Watch for updates on this problem that might affect your retirement income.
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